Investigating the Environmental Kuznets Curve for India

Abstract

In recent years various empirical studies have investigated and quantified the causal relationship between economic growth and environmental degradation through an empirical model so-called Environmental Kuznets Curve (EKC), currently applied to a range of pollutants. The inverted U-shaped Environmental Kuznets curve (EKC) demonstrates that initially the pollution and environmental degradation surpass the level of income per capita; however this trend reverses since at the higher income levels, economic growth initiates environmental upgrading. It's distinguishing aspect in the initial stage of development exhibits negative relationship between the environmental quality and per capita income increased and positive relationship between improving environmental condition at the higher level of development. The developing countries find Kuznets verdict indubitably tedious between economic growth and environmental development. Unresponsive regarding environmental protection and endeavor to speed up economic growth had not only kept environmental considerations as secondary objectives in policy making in these countries but also threatened their sustainable future. The paper overviews the EKC literature, background history, policy conceptual insights, and the conceptual and methodological critique. It also underlines other econometric problems with estimates of the EKC. Based on secondary data with reference to India for EKC, this paper analyzes the relationship between Carbon Emission CO2 (per capita metric tons) and GDP (real net per capita in Rs). Using Kuznets original model we conclude that in India after 1990 CO2 emission growth rate is lower than GDP (real net per capita in Rs) growth rate (Implying India follows EKC).

Reassessing the Environmental Kuznets Curve in Relation to Energy Efficiency and Economic Growth

“…Hence, it proved that renewable energy usage growth helps reduce the pollution of these developing economies. The previous studies also establish the same affirmative influence of renewable energy usage on developing economies' carbon dioxide emissions [53,54].…”

Environmental Effects of China’s Overseas Direct Investment in South Asia

“…The financial sector development increased carbon emissions in emerging countries so the research studies conducted by Jiang and Ma (2019) support our finding in case of India. When considering individual countries Table 5, reports that EKC hypothesis the inverted U-shape curve exist in India and these finding are consistent with Sinha and Bhatt (2016) and Rani and Kumar (2019) and Ritu and Naresh (2019)…”

“…The financial sector development increased carbon emissions in emerging countries so the research studies conducted by Jiang and Ma (2019) support our finding in case of India. When considering individual countries Table 5, reports that EKC hypothesis the inverted U-shape curve exist in India and these finding are consistent with Sinha and Bhatt (2016) and Rani and Kumar (2019) and Ritu and Naresh (2019) whereas, Pakistan and Nepal shows U-shape curve while Bangladesh manifest N-shape curve and the research finding of Choi et al (2010), Sirag et al (2018), Lee and Chen (2021), Uzair Ali et al (2020), and Aljadani et al (2021) proved the various temporal pattern of EKC hypothesis in their research studies.…”

Environmental quality in India: Application of environmental Kuznets curve and Sustainable Human Development Index

“…Using the Kuznets model, it has been found that, after 1990, India's CO 2 emission growth rate is lower than its GDP growth rate. The Indian economy witnesses inverted U shaped EKC for CO 2 emission, implying that India follows the EKC, as stated by Sinha and Bhatt ().…”

“…The Indian economy witnesses inverted U shaped EKC for CO 2 emission, implying that India follows the EKC, as stated by Sinha and Bhatt (2016).…”